FM-ENUS.AA.PPU-78/V20 "Integrity is doing the right thing even when no one is watching" - C.S. Lewis 1. Differential Analysis for Decision Making (40%) A company is facing serious problems related to COVID 19, so it has to choose which segment to sacrifice due to the lack of funds needed for product manufacture and also limited working hours by the government. This company is engaged in fashion Data on sales and expenses for the past quarter follow 470.000 $ Variable Manufacturing and selling expenses 175,000 $70,000 Bag Sales Total S Watch 100,000 $ 25.000 $ 350.000 1 Wallet 2 $5,000 $ contribution margin $ 310,000 Find Advertising, traceable Depreciation of special cuipment Salaries of product line managers located common find expertes Total Flied expenses Net operating income out 5 $ $ ? 75.000 5 40.000 39,000 $ $ 221.000 15,000 5 s 15,000 $ 20,000 $ $ (5.00) 7 50.000 $10,000 14.000 $ 20,000 12.0DO $ 12.000 25,000 $ 18.000 101.000 7 $ 20,000 5 7 Management is concerned about the continued losses shown by the bag division and wants a recommendation as to whether or not the line should be discontinued. The special equipment used to produce bag has moresale value and does not wear out. Required: 1. Shouldlug division be discontinued show the calculation and explain the calculation (10%) 2. Recast the above data in a form that would be more usable to management in assessing the long-nn profitability of the various product lines. (10%) 3. If the bag Department is ciropped, what will be the effect on the net operating income of the company as a whole and if it will affect 10% kcrease sales in watch division and affect 15% decrease sales in wallet division (10%) 4. Based on your opinion, is this a good choice for the company to drop bug division In this COVID 19 era, wiat should company do related to their employee especially in the bag division. If you are the decision making in the compuy as CEO, how you can tell them when you want to drop the bug divisiot (10%) 2. Transfer Pricing (10%) As a boba manufacturer company, Ngeboba supplies boba to Gula Hula and BobaTime. Ngebola supplies 100 kgs to Gula Hula per month and also 500 kgs to Boba Time per month mas one of the founders of Gula Hua and BobaTime, felt responsible for the supply of boba for both brands Ngebola itself has a product cost of IDR 10,000 per kilo. Ngeboba sells to other customers than Gula Hula and BobaTime for IDR 20,000 per kilogram Gula Hula gets prices from other suppliers at IDR 17,000 per kilogram while Bobulime gets 2,000 cheaper prices per kilogram than the price obtained by Gula Hula because it buys more. In general, Ngebota's production capacity is 2 (two) tors per month. During the 3rd quarter, Ngebulu felt that his sales lad risen drastically, so Ngeboba was faced with the following consctitions: FM-ENUS.AA.PPU-78/V20 "Integrity is doing the right thing even when no one is watching" - C.S. Lewis 1. Differential Analysis for Decision Making (40%) A company is facing serious problems related to COVID 19, so it has to choose which segment to sacrifice due to the lack of funds needed for product manufacture and also limited working hours by the government. This company is engaged in fashion Data on sales and expenses for the past quarter follow 470.000 $ Variable Manufacturing and selling expenses 175,000 $70,000 Bag Sales Total S Watch 100,000 $ 25.000 $ 350.000 1 Wallet 2 $5,000 $ contribution margin $ 310,000 Find Advertising, traceable Depreciation of special cuipment Salaries of product line managers located common find expertes Total Flied expenses Net operating income out 5 $ $ ? 75.000 5 40.000 39,000 $ $ 221.000 15,000 5 s 15,000 $ 20,000 $ $ (5.00) 7 50.000 $10,000 14.000 $ 20,000 12.0DO $ 12.000 25,000 $ 18.000 101.000 7 $ 20,000 5 7 Management is concerned about the continued losses shown by the bag division and wants a recommendation as to whether or not the line should be discontinued. The special equipment used to produce bag has moresale value and does not wear out. Required: 1. Shouldlug division be discontinued show the calculation and explain the calculation (10%) 2. Recast the above data in a form that would be more usable to management in assessing the long-nn profitability of the various product lines. (10%) 3. If the bag Department is ciropped, what will be the effect on the net operating income of the company as a whole and if it will affect 10% kcrease sales in watch division and affect 15% decrease sales in wallet division (10%) 4. Based on your opinion, is this a good choice for the company to drop bug division In this COVID 19 era, wiat should company do related to their employee especially in the bag division. If you are the decision making in the compuy as CEO, how you can tell them when you want to drop the bug divisiot (10%) 2. Transfer Pricing (10%) As a boba manufacturer company, Ngeboba supplies boba to Gula Hula and BobaTime. Ngebola supplies 100 kgs to Gula Hula per month and also 500 kgs to Boba Time per month mas one of the founders of Gula Hua and BobaTime, felt responsible for the supply of boba for both brands Ngebola itself has a product cost of IDR 10,000 per kilo. Ngeboba sells to other customers than Gula Hula and BobaTime for IDR 20,000 per kilogram Gula Hula gets prices from other suppliers at IDR 17,000 per kilogram while Bobulime gets 2,000 cheaper prices per kilogram than the price obtained by Gula Hula because it buys more. In general, Ngebota's production capacity is 2 (two) tors per month. During the 3rd quarter, Ngebulu felt that his sales lad risen drastically, so Ngeboba was faced with the following consctitions